Republic’s pre-tax income from continuing operations for the second
quarter of 2014 was $33.3 million, or $0.63 per diluted share, a 23.3%
increase over the previous year. Republic's income from continuing
operations for the second quarter of 2014 was $20.1 million, or $0.38
per diluted share. This is a $4.0 million, or $0.08 per diluted share,
increase from the previous year.

Republic’s pre-tax income from continuing operations for the six-month
period was $56.1 million, or $1.06 per diluted share, a 21.2% increase
over the previous year. Republic’s income from continuing operations
for the six-month period was $34.1 million, or $0.65 per diluted
share. This is a $6.6 million, or $0.12 per diluted share, increase
from the same six-month period of the previous year.

On April 7, 2014, Republic’s Board of Directors authorized management
to use up to $75.0 million of unrestricted cash to buy back common
shares and/or early retire convertible debt during the following 12
months. Pursuant to the authorization, Republic redeemed a $22.3
million convertible note, leaving $52.7 million remaining on the share
repurchase and convertible debt retirement authorization. The
repayment of the convertible note reduced the Company's dilutive share
count by about 2.2 million shares for the quarter.

“I am pleased we were able to report improved second quarter financial
results, as we remain focused on executing on our strategic plan to
simplify and streamline our business,” said Republic’s CFO Timothy
Dooley.

“Last Friday, Republic celebrated 40 years of commercial passenger
service and our long-term success would not be possible without the hard
work and dedication of my 6,500 co-workers. I would like to thank them
for their diligence and commitment to our mission to provide safe, clean
and reliable service to our airline partners and our guests on board,”
said Republic’s Chairman, President and CEO Bryan Bedford.

The Company reported the following key metrics:

Three Months ended June 30,

Six Months ended June 30,

Increase /

Increase /

(Unaudited)

2014

2013

(Decrease)

2014

2013

(Decrease)

($ in millions, except as noted)

Operating revenues

$

343.0

$

336.7

1.9

%

$

680.5

$

661.4

2.9

%

Pre-tax income from continuing operations

$

33.3

$

27.0

23.3

%

$

56.1

$

46.3

21.2

%

Pre-tax margin

9.7

%

8.0

%

1.7 pts

8.2

%

7.0

%

1.2 pts

Diluted earnings per share from continuing operations (dollars)

$

0.38

$

0.30

26.7

%

$

0.65

$

0.53

22.6

%

EBITDA from continuing operations

$

105.3

$

90.7

16.1

%

$

199.2

$

175.5

13.5

%

EBITDA margin from continuing operations

30.7

%

26.9

%

3.8 pts

29.3

%

26.5

%

2.8 pts

Available seat miles (ASMs in millions)

3,715

3,338

11.3

%

7,081

6,506

8.8

%

Block Hours

191,748

187,087

2.5

%

377,361

364,666

3.5

%

Departures

106,499

110,399

(3.5

)%

209,848

213,023

(1.5

)%

Operating Revenue HighlightsOperating revenues increased
$6.3 million, or 1.9%, from the second quarter of 2013 to $343.0 million
in the second quarter of 2014. Fixed-fee service revenue increased $20.2
million, or 6.4%, to $337.1 million due to increased Q400 flying with
United Airlines and increased E175 flying with American Airlines.
Passenger service revenue decreased $13.8 million because of the removal
of E190 aircraft operating under pro-rate agreement with Frontier
Airlines.

Operating Expense HighlightsThe increase in wages and
benefits expenses of 8.6% or $7.3 million was primarily due to an
increase in E175 operations, an increase in the cost of benefits we
provide to our employees and new pilot flight and duty rest regulations
(FAR 117).

Fuel expense for the second quarter of 2014 decreased $6.6 million, or
54.1%, to $5.6 million primarily due to a 57.6% decrease in gallons
consumed related to the elimination of pro-rate flying for Frontier.
Fuel expense is primarily attributable to our fixed-fee charter
operations and is a pass-through to our partner.

Landing fees and airport rents decreased $7.8 million, or 54.2%,
primarily due to United Airlines beginning to pay all landing fees in
June 2013, coupled with the decrease in our small jet operations.

The increase in depreciation and amortization of 16.9%, or $6.1 million,
was primarily related to the increase in the E175 fleet.

Fleet HighlightsAs of June 30, 2014, Republic operated a
fleet of 237 aircraft. Through June, the Company has removed 23 ERJ
aircraft from CPA service, and has taken delivery of 11 E175 aircraft
and expects to take delivery of 13 E175 aircraft during the remainder of
2014. As of June 30, 2014, within its fixed-fee and charter agreements,
the Company operated 45 aircraft with 44-50 seats and 192 aircraft with
69-99 seats.

Balance Sheet and LiquidityThe Company’s total cash balance
decreased $14.2 million to $286.5 million as of June 30, 2014, compared
to December 31, 2013. Restricted cash increased $0.8 million, to $24.8
million, from December 31, 2013, due to the escrow requirements under
fixed-fee charter agreements. The Company’s unrestricted cash balance
decreased $15.0 million, to $261.7 million, from December 31, 2013, due
to the redemption of the $22.3 million convertible note on April 7,
2014. A consolidated balance sheet and summary cash flow statement have
been included in the tables section of this release.

The Company’s debt increased to $2.27 billion as of June 30, 2014,
compared to $2.17 billion at December 31, 2013, primarily related to the
financing of 11 new E175 aircraft purchased for our American Airlines
fixed-fee agreement. As of June 30, 2014, about 97% of the Company's
debt is at a fixed interest rate. The Company has significant long-term
lease obligations for aircraft that are classified as operating leases
and are not reflected as liabilities on the Company’s consolidated
balance sheet. At a 6% discount factor, the present value of these lease
obligations was about $0.53 billion and $0.59 billion as of June 30,
2014, and December 31, 2013, respectively.

Corporate InformationRepublic Airways Holdings Inc., based
in Indianapolis, Indiana, is an airline holding company that owns
Chautauqua Airlines, Republic Airlines and Shuttle America, collectively
“the airlines.” The airlines operate a combined fleet of about 240
aircraft and offer scheduled passenger service on more than 1,300
flights daily to about 110 cities in the U.S., Canada and Caribbean
through fixed-fee flights operated under airline partner brands,
including American Eagle, Delta Connection, and United Express. The
Company currently employs about 6,500 aviation professionals. For more
information on Republic Airways, please visit our website at www.rjet.com.

The Company will conduct a telephone briefing to discuss its second
quarter 2014 results at 10:30 a.m. (EDT) Thursday, August 7, 2014. This
call is being webcast by Thomson/Reuters and can be accessed at the
Republic Airways Holdings’ website, www.rjet.com.
Those wishing to participate can do so by calling (877) 415-3181.
International callers can participate by calling +1 (857) 244-7324; the
passcode is 41078827.

To listen to a telephone replay of the webcast, call (888) 286-8010 and
use password 31357045. International telephone replay will be available
by calling +1 (617) 801-6888 and using the same password. The replay
will be available from 2:30 p.m. (EDT)August 7, 2014, to 11:59 p.m.
(EDT)August 14, 2014.

Additional Information

In addition to historical information, this release contains
forward-looking statements. Republic Airways Holdings Inc. may, from
time to time, make written or oral forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements encompass Republic Airways’ beliefs, expectations, hopes or
intentions regarding future events. Words such as “expects,” “intends,”
“believes,” “anticipates,” “may,” “will,” “should,” “plan,” “estimate,”
“predict,” “potential,” “continue,” or “likely” and similar expressions
as well as the negative of such expressions are used to identify
forward-looking statements. All forward-looking statements included in
this release are made as of the date hereof and are based on information
available to Republic Airways as of such date. Republic Airways assumes
no obligation to update any forward-looking statement. Actual results
may vary, and could differ materially, from those anticipated,
estimated, projected or expected in these forward-looking statements for
a number of reasons, including, among others, the risk factors disclosed
in the Company's most recent filing with the Securities and Exchange
Commission.

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

(In millions, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

% Increase /

% Increase /

2014

2013

(Decrease)

2014

2013

(Decrease)

OPERATING REVENUES:

Fixed-fee service

$

337.1

$

316.9

6.4

%

$

665.5

$

620.9

7.2

%

Passenger service

—

13.8

(100.0

)%

—

29.0

(100.0

)%

Charter and other

5.9

6.0

(1.7

)%

15.0

11.5

30.4

%

Total operating revenues

343.0

336.7

1.9

%

680.5

661.4

2.9

%

OPERATING EXPENSES:

Wages and benefits

91.8

84.5

8.6

%

181.0

169.5

6.8

%

Aircraft fuel

5.6

12.2

(54.1

)%

12.9

25.8

(50.0

)%

Landing fees and airport rents

6.6

14.4

(54.2

)%

13.8

30.4

(54.6

)%

Aircraft and engine rent

31.3

30.8

1.6

%

62.4

59.6

4.7

%

Maintenance and repair

61.7

62.0

(0.5

)%

126.0

116.7

8.0

%

Insurance and taxes

4.4

5.9

(25.4

)%

10.9

12.0

(9.2

)%

Depreciation and amortization

42.2

36.1

16.9

%

83.5

73.5

13.6

%

Other impairment charges

—

—

—

%

19.9

—

100.0

%

Other

36.4

36.2

0.6

%

72.9

72.0

1.3

%

Total operating expenses

280.0

282.1

(0.7

)%

583.3

559.5

4.3

%

OPERATING INCOME

63.0

54.6

15.4

%

97.2

101.9

(4.6

)%

OTHER INCOME (EXPENSE):

Interest expense

(29.8

)

(27.6

)

8.0

%

(59.6

)

(55.7

)

7.0

%

Fair value gain - restructuring asset

—

—

—

%

18.4

—

100.0

%

Other, net

0.1

—

100.0

%

0.1

0.1

—

%

Total other expense

(29.7

)

(27.6

)

7.6

%

(41.1

)

(55.6

)

(26.1

)%

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

33.3

27.0

23.3

%

56.1

46.3

21.2

%

INCOME TAX EXPENSE

13.2

10.9

21.1

%

22.0

18.8

17.0

%

INCOME FROM CONTINUING OPERATIONS

20.1

16.1

24.8

%

34.1

27.5

24.0

%

INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX

—

8.5

(100.0

)%

—

(2.6

)

(100.0

)%

NET INCOME

$

20.1

$

24.6

(18.3

)%

$

34.1

$

24.9

36.9

%

INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE - BASIC

$

0.40

$

0.33

21.2

%

0.69

0.56

23.2

%

INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE - DILUTED

$

0.38

$

0.30

26.7

%

0.65

0.53

22.6

%

NET INCOME PER COMMON SHARE - BASIC

$

0.40

$

0.50

(20.0

)%

0.69

0.51

35.3

%

NET INCOME PER COMMON SHARE - DILUTED

$

0.38

$

0.46

(17.4

)%

0.65

0.48

35.4

%

Weighted average common shares:

Basic

49.8

49.2

1.2

%

49.7

48.9

1.6

%

Diluted

52.9

54.4

(2.8

)%

52.9

54.1

(2.2

)%

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In millions, except share and per share amounts)

June 30,

December 31,

2014

2013

ASSETS

Current Assets:

Cash and cash equivalents

$

261.7

$

276.7

Restricted cash

24.8

24.0

Receivables - net of allowance for doubtful accounts of $2.0 and
$1.5, respectively

1. Revenue passenger miles are the number of scheduled miles flown by
revenue passengers.

2. Available seat miles are the number of seats available for passengers
multiplied by the number of scheduled miles those seats are flown.

3. Passenger load factor is revenue passenger miles divided by available
seat miles.

4. Total operating costs, including interest expense and fair value
gain, divided by available seat miles.

5. Hours from takeoff to landing, including taxi time.

6. Average number of hours per day that an aircraft flown in revenue
service is operated (from gate departure to gate arrival).

The Company is providing disclosure of the reconciliation of reported
non-GAAP financial measures to its comparable GAAP basis financial
measures. The Company believes that the non-GAAP financial measures
provide investors meaningful measurements of the Company's financial
performance.

Non-GAAP Reconciliation of Income from Continuing Operations to
EBITDA from Continuing Operations

"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this press release regarding Republic
Airways Holdings's business which are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion of such
risks and uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see the summary of risk factors contained
in our earnings release.